Business graduates are shunning careers in government-owned companies in favour of publicly listed or venture capital-funded businesses in the IT, banking and finance and energy-utilities sectors.
A global study of MBA students carried out by Hill & Knowlton revealed that reputation and geographical location also played a part in attracting graduates to businesses.
Sixty-one per cent of respondents said they were interested in working for publicly-traded companies and just over half wanted to work with firms owned by venture capital or private equity funds.
However, only 24 per cent said they wanted to work with family-owned companies, with 32 per cent uninterested, while Government ventures fared even worse, with 46 per cent saying they would not consider it.
According to the survey, graduates are seeking out companies with established reputations. Almost three-quarters of those who took part in the study said that corporate reputation was extremely or very important when choosing where to work, with only 4 per cent saying it was unimportant.
Companies doing business in the alcohol, chemical or tobacco sectors are bottom of the list for graduates seeking a job. Oil, gas and pharmaceutical firms were also hindered by reputation.
"MBAs graduating in a post-Enron, post-Parmalat world have a strong preference for the companies with the best reputations," said Andrew Laurence, chairman and chief executive of Hill & Knowlton EMEA. "It is clear that recruiters of top talent will need more than just generous compensation and ample opportunity. The leaders of tomorrow are overwhelmingly seeking to associate themselves with industries, and specifically companies, with great reputations."
Quality of management was one of the top factors affecting reputation, with social responsibility the least important to respondents.
Graduates are influenced by geographical location, with western Europe and North America topping the list of preferred locations. Emerging markets such as the Middle East, Africa and eastern Europe languished at the bottom of the charts.
MBA students are considering possible career opportunities, the corporate culture and working environment, and the compensation and benefits package offered before making a career choice.
